ILLINOIS PUBLIC ADJUSTER CORE EXAM MANUAL
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Ambiguities - ✔✔not being clear, goes against the insurance company
✔✔Indemnity - ✔✔Principle of restoring the extent of the loss
✔✔Subrogation - ✔✔going after the third party's negligence
✔✔Material misrepresentation - ✔✔can reject coverage
✔✔Warranties - ✔✔Affirmative, Promissory, Implied
✔✔Insurable interest - ✔✔Interest in property that may cause one the probability of
financial loss
✔✔Hazards - ✔✔Physical, Moral, and Morale
✔✔PIGA Act - ✔✔300,000 per claim and 10k per policy
✔✔Death of insured - ✔✔180 days after death or after the policy ends
✔✔Short rate - ✔✔Insured cancels
✔✔Pro Rate - ✔✔Insurer cancels
✔✔Flat rate - ✔✔neither exchanged
✔✔Dwelling Policy(Owner occupied) - ✔✔Nonpayment and Material Mis 30 days
✔✔Dwelling and commercial(Nonowner occupied) - ✔✔Nonpayment and material mis
15 days, underwriting 60 days
✔✔Specified(Named Perils) - ✔✔Covered, Ex. Fire and lightning
✔✔Special Form(Open Perils) - ✔✔Not covered, Ex. Wear and Tear
✔✔Direct loss - ✔✔Fire and vandalism
✔✔Indirect loss - ✔✔Renting another place to live
✔✔ACV - ✔✔Replacement cost minus depreciation
, ✔✔RCV - ✔✔cost to replace with like, kind and quality at todays replacement cost
✔✔FRC - ✔✔replace damaged with functional equivalent
✔✔Market Value - ✔✔based upon free market conditions
✔✔Agreed value - ✔✔insured and insurer agree to amount of coverage to be written for
the policy term
✔✔Stated amount - ✔✔least of (1) Stated amount, (2) ACV, (3) cost of repair
✔✔Frame construction - ✔✔Wood
✔✔Masonry Construction - ✔✔Brick, concrete
✔✔Joisted masonry - ✔✔Walls masonry, floor wood
✔✔Noncombustible - ✔✔Metal
✔✔Masonry noncombustible - ✔✔Walls masonry, floor noncomb
✔✔Contributory Negligence - ✔✔Both negligent and guilty
✔✔Comparative negligence - ✔✔percentage of negligence
✔✔Parts of Policy structure - ✔✔Definitions, Declaration page, Insuring agreement,
conditions, exclusions, endorsements
✔✔Policy periods - ✔✔12 to 6 months
✔✔Deductibles - ✔✔Dollar, percentage, and time deductible
✔✔Pro Rata - ✔✔prorates loss payments among policies that are concurrent
✔✔Primary coverage - ✔✔Pays first
✔✔excess coverage - ✔✔pays after primary
✔✔Coinsurance - ✔✔Requires insured to carry insurance coverage to a specified
percentage
✔✔Blanket insurance - ✔✔provided to all locations
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Ambiguities - ✔✔not being clear, goes against the insurance company
✔✔Indemnity - ✔✔Principle of restoring the extent of the loss
✔✔Subrogation - ✔✔going after the third party's negligence
✔✔Material misrepresentation - ✔✔can reject coverage
✔✔Warranties - ✔✔Affirmative, Promissory, Implied
✔✔Insurable interest - ✔✔Interest in property that may cause one the probability of
financial loss
✔✔Hazards - ✔✔Physical, Moral, and Morale
✔✔PIGA Act - ✔✔300,000 per claim and 10k per policy
✔✔Death of insured - ✔✔180 days after death or after the policy ends
✔✔Short rate - ✔✔Insured cancels
✔✔Pro Rate - ✔✔Insurer cancels
✔✔Flat rate - ✔✔neither exchanged
✔✔Dwelling Policy(Owner occupied) - ✔✔Nonpayment and Material Mis 30 days
✔✔Dwelling and commercial(Nonowner occupied) - ✔✔Nonpayment and material mis
15 days, underwriting 60 days
✔✔Specified(Named Perils) - ✔✔Covered, Ex. Fire and lightning
✔✔Special Form(Open Perils) - ✔✔Not covered, Ex. Wear and Tear
✔✔Direct loss - ✔✔Fire and vandalism
✔✔Indirect loss - ✔✔Renting another place to live
✔✔ACV - ✔✔Replacement cost minus depreciation
, ✔✔RCV - ✔✔cost to replace with like, kind and quality at todays replacement cost
✔✔FRC - ✔✔replace damaged with functional equivalent
✔✔Market Value - ✔✔based upon free market conditions
✔✔Agreed value - ✔✔insured and insurer agree to amount of coverage to be written for
the policy term
✔✔Stated amount - ✔✔least of (1) Stated amount, (2) ACV, (3) cost of repair
✔✔Frame construction - ✔✔Wood
✔✔Masonry Construction - ✔✔Brick, concrete
✔✔Joisted masonry - ✔✔Walls masonry, floor wood
✔✔Noncombustible - ✔✔Metal
✔✔Masonry noncombustible - ✔✔Walls masonry, floor noncomb
✔✔Contributory Negligence - ✔✔Both negligent and guilty
✔✔Comparative negligence - ✔✔percentage of negligence
✔✔Parts of Policy structure - ✔✔Definitions, Declaration page, Insuring agreement,
conditions, exclusions, endorsements
✔✔Policy periods - ✔✔12 to 6 months
✔✔Deductibles - ✔✔Dollar, percentage, and time deductible
✔✔Pro Rata - ✔✔prorates loss payments among policies that are concurrent
✔✔Primary coverage - ✔✔Pays first
✔✔excess coverage - ✔✔pays after primary
✔✔Coinsurance - ✔✔Requires insured to carry insurance coverage to a specified
percentage
✔✔Blanket insurance - ✔✔provided to all locations
